caa a22 4500 378936379 CHVBK 20180305123641.0 cr unu---uuuuu 161128e20040914xx s 000 0 eng 10.2202/1538-0645.1278 doi (NATIONALLICENCE)gruyter-10.2202/1538-0645.1278 Anti-trade Bias in Trade Policy and General Equilibrium [Elektronische Daten] [Nuno Limao, Arvind Panagariya] An important question that has continued to elude trade economists is why trade interventions are biased in favor of import-competing rather than exportable sectors. Indeed, as Philip Levy (1999) points out, under a set of neutrality assumptions, the dominant political-economy model, Grossman and Helpman (1994), predicts a pro-trade bias. We demonstrate that if we replace the almost partial equilibrium model with a general equilibrium model in the Grossman-Helpman political economy model, anti-trade bias may emerge even if we assume symmetric technologies, endowments and preferences across sectors provided that the elasticity of substitution in production exceeds unity. In addition, we show that ceteris paribus, in general equilibrium, increases in the imports-to-GDP ratio lower the endogenously chosen tariff and the production share of the import sector in GDP has an ambiguous effect. ©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston trade policy nationallicence anti-trade bias nationallicence import penetration nationallicence Limao Nuno University of Maryland, Limao@econ.umd.edu aut Panagariya Arvind Columbia University, panagari@wam.umd.edu aut Contributions in Economic Analysis & Policy De Gruyter 3/1(2004-09-14) 3:1 2004 3 bejeap https://doi.org/10.2202/1538-0645.1278 text/html Onlinezugriff via DOI 1 research article jats NATIONALLICENCE 856 40 https://doi.org/10.2202/1538-0645.1278 text/html Onlinezugriff via DOI NATIONALLICENCE 700 1- Limao Nuno University of Maryland, Limao@econ.umd.edu aut NATIONALLICENCE 700 1- Panagariya Arvind Columbia University, panagari@wam.umd.edu aut NATIONALLICENCE 773 0- Contributions in Economic Analysis & Policy De Gruyter 3/1(2004-09-14) 3:1 2004 3 bejeap CC0 http://creativecommons.org/publicdomain/zero/1.0 nationallicence BK010053 XK010053 XK010000 NATIONALLICENCE NATIONALLICENCE NL-gruyter